Tanzania Gold Production Hits Record 72 Tonnes as Barrick-Acacia Tax Dispute Reaches Final Resolution

Tanzania's gold mining sector has achieved a historic milestone, with production reaching 72 tonnes in 2025, according to official figures released by the Ministry of Minerals. The record output, which represents a 23 percent increase over the 58.5 tonnes produced in 2024, marks the culmination of years of regulatory uncertainty and concludes one of Africa's most consequential mining disputes -- the decade-long tax conflict between the Tanzanian government and Barrick Gold Corporation over its former subsidiary, Acacia Mining.

The Barrick-Acacia resolution, finalized in March 2026, brought an end to a saga that had severely damaged Tanzania's reputation as an investment destination and cost the country billions in delayed investment. Under the terms of the final settlement, Barrick Gold's subsidiary Twiga Minerals Corporation -- the entity formed after Acacia's delisting in 2020 -- agreed to pay the Tanzanian government $300 million in back taxes and penalties, while the government committed to maintaining a stable fiscal and regulatory framework for the remaining life of the Bulyanhulu, Buzwagi, and North Mara mines.

The settlement also established a new royalty regime for gold operations in Tanzania: a 6 percent royalty on gross revenue for mines producing more than 50,000 ounces annually, and 4 percent for smaller operations, replacing the previous structure that had been a source of dispute. Additionally, the government retained its 16 percent free-carried interest in all mining operations and established a framework for future disputes to be resolved through international arbitration rather than unilateral government action.

Barrick Gold CEO Mark Bristow, who personally led negotiations with President Samia Suluhu Hassan's administration, described the resolution as "a new chapter for Tanzania's mining sector." Speaking at the Bulyanhulu mine on April 10, Bristow stated: "We have invested over $1 billion in Tanzania since the dispute began, despite the uncertainty. With this resolution behind us, we can now invest with confidence in the extraordinary geological potential that this country offers."

The North Mara mine has been the primary driver of Tanzania's production growth. Barrick invested $525 million in an expansion project that increased the mine's processing capacity from 4.8 million tonnes of ore per year to 7.2 million tonnes, and extended the mine's life to at least 2036. The expansion included a new carbon-in-leach processing plant, upgraded tailings management facilities, and the development of the Gokona underground deposit, which is expected to contribute an additional 150,000 ounces of gold annually.

However, North Mara's expansion has not been without controversy. Human rights organizations, including Amnesty International and MiningWatch Canada, have documented allegations of excessive force by mine security personnel and police against illegal miners, known locally as "intruders," who enter the mine's concession area to scavenge gold-bearing ore. In a report released in February 2026, Amnesty International documented 23 incidents of alleged excessive force at North Mara between 2023 and 2025, resulting in 7 deaths and 34 injuries.

Barrick's Bristow acknowledged the issue, stating that the company had "zero tolerance for human rights abuses" and had implemented a comprehensive security reform program at North Mara, including the deployment of body-worn cameras for all security personnel, the establishment of a community complaints mechanism, and the engagement of an independent security auditor. "We recognize that the historical legacy at North Mara is not one we are proud of," Bristow said. "We are committed to ensuring that the expanded mine operates to the highest international standards."

Beyond Barrick's operations, Tanzania's gold sector has attracted renewed interest from other international investors. Australia's Resolute Mining has restarted operations at the Golden Pride mine, which had been on care and maintenance since 2020, investing $180 million in a new processing plant designed to treat refractory gold ore. Shanta Gold, a UK-listed company, has expanded its New Luika mine in southern Tanzania, producing 98,000 ounces in 2025, a 15 percent increase over the previous year.

Tanzania's artisanal and small-scale mining (ASM) sector, which employs an estimated 1.5 million people and produces approximately 15 tonnes of gold annually, has also benefited from improved regulatory frameworks. The government's formalization program, launched in 2023, has registered over 4,200 ASM operations and established designated mining zones in Geita, Shinyanga, and Mara regions. The program includes access to financing through the Mining Development Fund, which has disbursed $45 million in loans to small-scale miners since its inception.

The economic impact of Tanzania's gold boom has been significant. Mining sector revenues contributed $2.3 billion to government coffers in 2025, representing approximately 4.8 percent of GDP. The sector directly employs 28,000 people and indirectly supports an estimated 120,000 additional jobs in logistics, construction, and services. Gold exports accounted for 38 percent of Tanzania's total export earnings of $6.1 billion in 2025.

Tanzania's Central Bank has also capitalized on the production surge, increasing its gold reserves by 12 tonnes in 2025 to a total of 45 tonnes, part of a broader strategy to diversify foreign exchange reserves away from US dollar-denominated assets. The bank has established a domestic gold purchasing program, buying gold directly from licensed miners and refineries at international spot prices, providing an additional source of liquidity for the sector.

Dr. Dorothy Kinenge, director of the Tanzania Extractive Industries Transparency Initiative (TEITI), noted that the sector's progress must be accompanied by stronger transparency and accountability mechanisms. "We are producing more gold than ever, but the question remains: who benefits and by how much?" Kinenge said. "Our EITI reports consistently reveal gaps in revenue reconciliation, particularly around royalty payments, transfer pricing by multinational operations, and the management of the Mining Development Fund. As production grows, these governance gaps become more consequential."

For Tanzania, the record gold production represents both an achievement and a responsibility. The country sits on some of Africa's richest gold deposits, with total estimated reserves exceeding 2,200 tonnes. Managing that wealth transparently, equitably, and sustainably -- while avoiding the mistakes that defined the Acacia dispute era -- will determine whether Tanzania's gold boom translates into lasting prosperity or becomes another cautionary tale from Africa's extractive sector.